Question

Find the simple interest paid for 10 years on a $10,000 loan at 4% per year.

Answer 1

$\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\to& \ 10000\\ r=rate\to 4\%\to \frac{4}{100}\to &0.04\\ t=years\to &10 \end{cases} \\\\\\ I=(10000)(0.04)(10)\implies I=4000$

Answer 2

We can first find the interest needed for a year:
10000×0.04
=$400

To find the interest paid for 10 years,we would multiply the interest needed for a year by 10,which is:

400×10
=$4000

Thus the simple interest paid for 10 years is $4000.

Hope it helps!